Franklin Income Fund's Ed Perks prefers stocks, convertible bonds and high yield, but he's finding a few values in MLPs and corporates.

As manager of the $86 billion Franklin Income Fund (ticker: FKINX), he prowls the markets for undervalued securities that he thinks can appreciate in value and deliver a steady income stream, be it common shares, preferred stock, bonds or convertibles. Since Barrons.com interviewed Perks in 2012, he has cut back on fixed income and shifted more into dividend-paying stocks. With the fund untethered by weighting restrictions, equities plus convertibles now account for about 64% of the...